Maine Governor Vetoes Proposed Statewide Data Center Construction Ban

The governor of Maine vetoed legislation that would have created the first statewide ban on construction of large data centers. At least 11 other states have introduced comparable bills during the current session. In Washington, D.C., Sen. Bernie Sanders (I-VT) and Rep.

Alexandria Ocasio-Cortez (D-NY) have introduced a bill to freeze all new data center construction nationwide. The sponsors stated the measures aim to shield communities from higher electricity costs, environmental effects, and corporate influence.

Data centers already fall under multiple federal statutes, including the Clean Air Act, the National Environmental Policy Act, and the Endangered Species Act. States have added further requirements: California maintains energy-efficiency standards, Illinois requires community impact assessments, and Oregon’s POWER Act directs large energy users to fund grid upgrades.

More than 300 data center bills have been filed across over 30 state legislatures in 2026. At least 18 states have created special rate classes for large energy users. Local opposition has blocked or delayed more than $160 billion in projects since 2024.

March 4, President Donald Trump announced the Ratepayer Protection Pledge. Under the pledge, seven major technology companies agreed to build or purchase their own generation capacity, cover infrastructure upgrades, and adopt separate rate structures so household electricity costs would not rise.

Two projects in North Dakota produced different results based on site selection and local engagement. One facility placed 800 feet from residences and strained the grid, leading county officials to cut power. Another project used a remote location, purchased stranded wind power that lowered local rates by $5 million in one year, and held public meetings before construction.

A planned data center at a former paper mill in Jay, Maine, that closed in 2023 would have created 1 million square feet of new economic activity on a site that once supported more than 1,000 jobs. A state senator stated the moratorium would also eliminate 100 long-term jobs tied to a separate power-generating project.

The United States accounts for 54 percent of global hyperscale data centers. South Dakota rejected a proposed moratorium and instead enacted a Data Center Bill of Rights requiring large facilities to cover their own costs while preserving local regulatory authority.